Whistleblowing involves an employee who works for a company drawing attention to unsafe or illegal business practices. Blue-collar workers might act as whistleblowers when companies violate safety standards. White-collar professionals may report financial misconduct, such as tax fraud.
Whistleblowing can involve reporting concerns to the chain of management within a company or notifying regulatory professionals about violations and problematic company practices. Workers who are aware of questionable practices on the part of their employers are often anxious about reporting those issues, as they do not want to face punishment.
Are whistleblowers at risk of losing their jobs for bringing their concerns to the attention of others?
The law prohibits retaliation
Whistleblowing activities have protection under federal statutes. Employers should not penalize workers for reporting concerns internally, alerting regulatory agencies or filing qui tam lawsuits. In theory, whistleblower should retain their jobs, and their employers should not consider their whistleblowing activities when making decisions about employee retention or promotions.
Unfortunately, illegal retaliation does occur. Businesses may terminate, demote or unfavorably transfer whistleblowers as a punishment. Their actions can have a chilling effect on others considering whistleblowing activities.
Those concerned about potential retaliation can document issues before they act as whistleblowers and preserve communications with their employers about any retaliation that occurs afterward. With the support of a lawyer, whistleblowers who experience retaliation may be able to file wrongful termination lawsuits and hold companies accountable.
Understanding how the law protects whistleblowers is the first step toward making use of those legal rights. An attorney’s guidance is important before whistleblowing, while communicating with employers or regulatory agencies and when responding to retaliatory employer actions.